Columbia Gas appeal could cost district millions

Tim BusbeyPublished: October 10, 2006 12:00AM

By JIM BREWER
T-G Staff Writer
LOUDONVILLE In her annual five-year forecast issued Monday, Loudon-ville-Perrysville School district treasurer Marie Beddow issued a grim financial report to school board members.
In August, Beddow reported, the Ohio Board of Tax Appeals ruled in favor of Columbia Gas Transmission Corp.s appeal.
Columbia, using the option for tax reappraisal based on a law regarding utility tax rates approved by the legislature in 2001, sought its rate for tax assessment be reduced from the current rate of 88 percent of true value to 25 percent of true value, Beddow explained.
The tax appeal board ruling has been appealed to the Ohio Supreme Court, but if that court upholds the appeal board ruling, the assessed value of Columbias personal property in the district would be reduced from approximately $11.6 million to $3.3 million, a reduction of $8.3 million. Translated to lost tax revenues, the loss is a potential $345,388 per year.
Worse, Supt. John Miller added, the ruling also could force the board to pay retroactive tax overpayments for the years 2001-05, which could force the district to pay back $1.7 million.
If that ruling is made, it would financially wipe us out, Miller said.
How does a school district react to such news?
Beddow answered, We could go to the voters and seek a levy to raise the funds necessary to pay back the funds, or we could ride it out and hope for a favorable ruling from the Supreme Court.
She noted the Columbia Gas financial crisis does not affect all school districts across Ohio, but only those with significant amount of investment by Columbia in the form of compressor stations, gas storage wells and other facilities.
Us, Hillsdale and Lucas will be severely affected in this area, Beddow said.
Well, we cant say you havent warned us about this, veteran board member Eric Koppert responded.
Otherwise, Beddows five-year forecast was generally upbeat, figuring the district will finish in the black for at least the next four years.
I have looked at hundreds of these forecasts from other schools, and none have been able to project five years in the black, Miller said.
Miller opened Mondays meeting by showing a DVD on Thomas Friedmans benchmark book, The World Is Flat, as it pertains to education.
In his book, Friedman contends that the convergence of technological, social, political and business changes has created a flat world, Miller said. This DVD, prepared as part of the Batelle Institutes Kids Flat Pack for Educators, was introduced at the recent superintendents summit.
The production detailed how world forces, particularly in China and India, have lessened American dominance in technical and industrial fields.
As we teach our students, we have to convince them that to succeed in an increasingly global economy, we must think globally, Miller said.
He shared a report from Ohio Superintendent of Public Instruction, Dr. Susan Tave Zelman, that American companies, as part of the dues they have to pay to do business in China, have set up advanced Star Wars schools of higher learning there.
Conceivably, Miller said, these schools will produce highly skilled engineers and scientists so that no American will ever need to be hired to work in these countries.
Board President Jeff Cooper and member Steve Kick noted at least two Loudonville residents now are working in technical positions in China.
Member Laura Lee Wilson called the situation a paradigm we are challenged to teach and inspire more than ever, but are working with a constantly shrinking budget to do it.
Koppert added, with the budget shrinking due, in part, to a state legislature not tuned in to the same global challenges we must face.
In reference to the legislature and state government in general, Kick asked that Miller read a proclamation declaring Nov. 12-18 American Education Week.
The first clause in the proclamation read public schools are the backbone of our democracy, providing young people with the tools they need to maintain our nations precious values of freedom, civility and equality.
I wanted you to read this to underscore the fact that one of our gubernatorial candidates, Kenneth Blackwell, has gone on record as supporting charter schools, whose existence threatens the continuing stability of our public educational structure, Kick said.
Personnel actions taken included aproving extended student academic time for teachers Kelly Shetler and Joy Taylor.
The following coaches for winter and spring sports seasons were hired: boys basketball, C.J. Spreng, freshmen; and Richard Knight, elementary; girls basketball, Bill Scarbery, eighth grade; Misty McMillen, seventh grade; Ashley Van Horn, elementary; wrestling, John Spreng, volunteer junior high; and Craig Henderson, elementary.
Bill Herman, head softball; Ken Young, head baseball; and Craig Henderson, head high school boys track.
Marilyn Wilkins was hired as a substitute teacher; retired teacher Murmur Calhoun a home instruction tutor; and Bonnie Kubala and McKenzie Payne, substitute classified employees.
The board adopted a revised job description for the positions of building and grounds supervisor, and assistant building grounds supervisor; and an amendment to the contract with Pepsi Americas for sale of Pepsi products